Credit Suisse has contracted with Fixnetix to provide hosting for the bank’s Advanced Execution Services (AES) group globally. Under the deal, Fixnetix will provide collocation and direct connectivity for European exchanges and new multilateral trading facilities, as well as low-latency market data and support for trading messages.
Established in 2001, the AES group was set up with the vision of providing clients with completely anonymous trading, an advanced set of electronic tools to facilitate that, and transparency on performance reporting. The group’s best known algorithm, Guerrilla, was launched four years ago to cover small-cap stocks; the algorithm uses a volume trigger so that if an order is large enough then the algorithm analyzes it for price, thus controlling signalling risk and effect on market impact.
Credit Suisse now offers 10 to 12 algorithms via most vendor screens. As well as basic with-volume and implementation shortfall-type algorithms, and its proprietary Guerrilla and Sniper models, Credit Suisse AES also offers strategies for foreign exchange, listed options, derivatives and futures.
Under its agreement with Fixnetix, Credit Suisse will use Fixnetix's Hedge Fund Hosting solution to provide the bank's high frequency, latency-sensitive trading customers with immediate access to the fastest exchange connections in order to minimise trading roundtrip times. In addition Fixnetix will provide the bank's clients with high-speed, non-conflated market data and the ability to gain access to any new market on demand.
"Partnering with Fixnetix means that we can provide our customers with a fully-supported, managed service with access to all the major markets, with a reliable and flexible trading infrastructure that delivers proven performance," according to Naseer Al-Khudairi, co-head of cash trading at Credit Suisse.
The deal is a significant win for UK-based Fixnetix, which also benefited, sources say, from a bump in hedge fund orders following the demise of Lehman Brothers earlier this autumn. Fixnetix is also believed to have been close to a similar deal with Lehman before it collapsed.